U.S. Credit-Card Balances Rise to $1.263 Trillion in Q2

U.S. credit-card balances rose by $21 billion in the second quarter to $1.263 trillion, according to a Federal Reserve Bank of New York household-debt report released August 11, 2026. The same data show why delinquency headlines can appear to conflict: the rate at which balances newly moved into serious delinquency was nearly unchanged, while a broader credit-report measure continued to climb.

The distinction matters. The higher stock measure shows that a substantial amount of credit-card debt remains seriously delinquent in credit-report data. It does not mean that 12.8% of Americans or 12.8% of credit-card accounts newly fell behind during the quarter.

Credit-card debt rose as total household debt edged lower

The New York Fed said total household debt declined by $13 billion, or 0.1%, to $18.771 trillion at the end of June. Credit-card balances moved in the opposite direction, increasing by $21 billion from the first quarter to $1.263 trillion.

Auto-loan balances rose by $28 billion to $1.713 trillion. Mortgage debt fell by $74 billion to $13.117 trillion, while home-equity lines of credit increased by $13 billion to $459 billion. Student-loan balances declined by $7 billion to $1.651 trillion.

A separate Federal Reserve Board consumer-credit series showed revolving credit at $1.3056 trillion in June, a preliminary figure. That series uses different sources and methods from the New York Fed’s nationally representative household-debt panel, so it provides broader context rather than a substitute measure for the New York Fed’s credit-card balance figure.

Why the delinquency numbers look contradictory

The New York Fed placed the annualized flow into serious credit-card delinquency at 6.97% in the second quarter, compared with 6.93% in the second quarter of 2025. The flow measure tracks balances that newly became at least 90 days late during the reference quarter, divided by balances that were current or less than 90 days past due in the previous quarter. The figure is annualized using a four-quarter moving calculation.

A separate stock measure looks at all credit-card balances reported as 90 or more days delinquent at a given point. That share rose from 7.6% in the third quarter of 2022 to 12.8% in the first quarter of 2026. Because the two figures measure different things and cover different periods, they should not be read as competing estimates of the same event.

In practical terms, the flow measure is a closer gauge of recent repayment behavior. The stock measure is a snapshot of delinquent debt still present in credit-report data, including older balances.

Charged-off debt drove most of the stock increase

In a companion analysis, New York Fed researchers said most of the recent rise in the stock measure came from charged-off balances. When a credit-card loan is charged off, it generally comes off the lender’s balance sheet. The borrower may still owe the debt, however, and the lender or a collector may continue to pursue it and update credit bureaus in accordance with applicable law and reporting rules.

Because those charged-off balances can remain in credit-report data, they continue to count in the New York Fed’s stock measure. The researchers said more than 23 million Americans still carried charged-off credit-card balances on their credit reports.

The analysis found that charged-off debts were being reported for longer periods than in the past. Between 2004 and 2012, about 40% of charged-off debts were still reported one year later. By 2024, that share had doubled to about 80%.

The researchers identified longer reporting as one possible explanation for the buildup. They also considered whether lenders were having less success collecting, but noted that recovery-rate data had changed only slightly. The analysis does not establish that households face no worsening financial stress, nor does it show that longer reporting means lenders are less successful at collection.

What the figures mean for consumers

The data do not show that credit-card stress has disappeared. New serious delinquencies remain elevated, and the stock of delinquent debt remains substantial. They do show that the 12.8% figure should not be read as the share of Americans or accounts newly falling behind.

For a current view of repayment behavior, the New York Fed says flow delinquency and lender-reported measures are more informative. Those measures indicate that credit-card delinquency has been elevated but largely stable since 2024, rather than accelerating at the same pace as the stock measure.

Consumers with a charged-off account should not assume the debt vanished when the original lender removed it from its balance sheet. The debt may remain part of a person’s obligations and may affect credit reporting or collection activity, subject to applicable law and reporting rules.

What to watch next

Future New York Fed quarterly reports will show whether credit-card balances continue to grow and whether the flow into serious delinquency begins to rise more clearly. Researchers will also be watching how long charged-off balances remain in credit-report data and whether household debt growth spreads beyond revolving credit.

Sources

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